HR News You Need to Know | October Edition

Welcome to our October edition of “HR News You Should Know.” This month has brought significant legal and regulatory updates that could have profound effects on your workplace policies and practices. Catch up on the latest news and updates: 

FTC Appeals Noncompete Ban Ruling 

On October 18, 2024, the FTC (Federal Trade Commission) appealed the August ruling from the fifth circuit court that struck down their noncompete ban. In April, the FTC released a rule banning virtually all noncompete agreements for all employers. For the time being, that rule is not in place. While the appeal works its way through the court system, we will keep you updated. Also keep in mind, the FTC still has the ability to analyze noncompete agreements on a case-by-case basis and many states have their own noncompete rules.  

OT Rule Update 

As we reported in September, a fifth circuit court determined the US DOL (Department of Labor) does have the authority to set the salary thresholds for exemptions. Click here to read that briefing and background.  

At this time, there are still pending challenges to January 1st effective date. Perhaps the most notable question is, does the DOL have the authority to implement automatic weekly salary increases?  

While we don’t know the answer to that question yet, we do know now is the time to start planning if you haven’t already. Don’t make any changes until closer to the end of the year, but Catapult advises you to go ahead and complete an audit on your employee classifications. Who is currently exempt and making less than $1,128 per week? What are your plans for getting into compliance?  

Either way, we have resources to assist with this exercise and following communication in ourOvertime Toolkit. This is also an excellent time to review all your positions for correct classification as Exempt or Nonexempt. 

PWFA 

The Pregnant Workers Fairness Act has been around since last summer. At first, it might have just read as ADA for pregnant workers, but the regulations are expansive, and we are starting to see lawsuits from the EEOC.  

One of my favorite fellow bloggers is Robin Shea from Constangy Brooks, Smith & Prophete. In her 10/18 post, she clearly and practically outlines things to look out for and includes links to learn more about the pending EEOC activity.  

It’s an unfortunate spot for these employers to be in, but hopefully, we get some guidance from the outcomes. If you have questions or concerns around PWFA, connect with the HR Advice Team today.  

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